Portugal: Austerity Cuts Struck Down

Portugal’s Constitutional Court ruled Friday that some of the unpopular pay cuts in this year’s state budget were unlawful, denying the government about $1.8 billion of predicted revenue. The court’s decision is a setback to the austerity deal between the government and foreign creditors who lent Portugal $101.5 billion in a bailout two years ago. The 13 judges said budget measures cutting holiday pay for government workers and pensioners, and others reducing unemployment and sickness benefits, were unconstitutional. They said the measures neglected guarantees of equality because private-sector workers were not subject to the measures. The government had no comment but scheduled a cabinet meeting for Saturday.

A version of this brief appears in print on April 6, 2013, on page A5 of the New York edition with the headline: Portugal: Austerity Cuts Struck Down. Order Reprints|Today's Paper|Subscribe